Prudential Regulation Authority Rulebook

5.1

A firm must make every effort to remedy the deficiencies that led to the imposition of a capital add-on arising as a result of an internal model significant risk profile deviation or a significant system of governance deviation.

[Note: Art. 37(3) of the Solvency II Directive]

5.2

Except as provided in 5.3, the SCR prior to the imposition of the capital add-on, together with the amount of the capital add-on imposed by the PRA, will constitute the firm’s SCR.

[Note: Art. 37(5) of the Solvency II Directive]

5.3

For the purposes of calculating the risk margin, the SCR of a firm must not include any capital add-on imposed as a result of a significant system of governance deviation.

[Note: Art. 37(5) of the Solvency II Directive]